Admin fees only. Benefits premiums, workers comp, and state unemployment are separate, and setup or per-run fees may apply. Typical published US market ranges as of 2026; treat quotes outside them as a question to ask, not automatically a bad deal.
How to use the number
- Benchmark, then unbundle. If a quote lands far above the range, ask what specifically drives it. Industry risk and heavy multi-state operations are legitimate reasons; vagueness is not.
- Prefer PEPM where offered. Percentage pricing quietly grows with every raise. The calculator shows you how far apart the two models drift at your salary level.
- Compare totals across models. A PEO fee only makes sense next to the alternative: ASO pricing plus your own benefits, or a bureau if payroll is the whole need. The PEO vs in-house calculator covers the build-your-own column.
- Read the exit terms. The cheapest quote with a punishing termination clause is not the cheapest quote. See hidden PEO fees.
Questions people actually ask
How much should a PEO cost for 20 employees?
At typical market rates of $40 to $160 per employee per month, roughly $800 to $3,200 per month in admin fees, or $10,000 to $38,000 per year, before benefits premiums. Percentage-priced quotes for a straightforward 20-person company commonly land between 2% and 6% of payroll.
How much can a PEO save me?
The savings, when they exist, come from three places: large-group benefits pricing versus your small-group rates, workers comp master-policy rates and claims management, and recovered owner or manager time. Whether those outweigh the admin fee depends on your current benefits costs and compliance load, which is why the honest answer is a comparison, not a slogan. This calculator gives you the fee side; get quotes to fill in the savings side.
Why do PEO quotes vary so much?
Because the inputs vary: headcount, states, industry risk, pay frequency, and service depth all move the number, and the two pricing models (flat per-employee versus percentage of payroll) scale differently as wages rise. Two legitimate quotes for the same company can differ by thousands per year, which is exactly why you benchmark before you negotiate.
